See how paying a little extra each month could reduce your interest and help you finish a loan sooner. Enter your balance, interest rate, remaining term and extra payment below.
Read the source: CFPB · Mortgage payment and payoff resources
Model an early payoff
Enter the annual interest rate from your offer. The estimate uses equal monthly payments.
Assumes constant interest, equal monthly periods and end-of-month payments. Excludes daily accrual, arrears, insurance refunds and prepayment penalties. A financed fee belongs in principal, not also in the separate fee field.
Model a balance today
Enter the outstanding principal, nominal annual rate, remaining term and an additional monthly amount. The tool first calculates a scheduled payment, then applies the extra amount to principal after each month’s interest.
Continue: 1st Franklin Financial Payoff: How to Request a Quote
What the model leaves out
It assumes no prepayment penalty, no new borrowing, no arrears and a constant rate. It does not model precomputed-interest rebates, insurance refunds, fees or daily accrual. Those differences can materially change a real payoff.
Use the result as a question
Compare estimated months and interest saved, then ask the lender how extra payments are applied and whether they change the next due date. Do not assume an extra payment replaces a later required instalment.
Continue: Loan Cost Comparison Calculator: APR, Fees and Payments
Frequently asked questions
Is an extra payment always applied to principal?
Confirm the lender’s allocation rules; this model assumes that treatment.
Can I use the estimate as a payoff quote?
No. Request a dated quote directly from the verified lender.
Sources
Read the original documents and company pages behind this guide.
- CFPB · Mortgage payment and payoff resources www.consumerfinance.gov · reviewed October 16, 2026
